Topic: The value of currency in country's economy - page 2. (Read 280 times)

Just as the price of a commodity rises when there is not enough of it in the market the value of the dollar falls when there is an oversupply of dollars in the economy. And when demand for dollars in international markets increases so does the price of the dollar. Part of the reason economic growth in the United States is so surprisingly strong is simply that the american government continues to spend a lot of money. To be strong has a positive impact on employment wages and consumer spending which makes the economy strong.

Thiis very interesting. I can tell you that the American knows what they are doing. The economy is far better than that of any country because they see good things and go for them. There are various migrants and by calculation thousands of immigrants come to the US every year with one or more reason. Some come over there because of education, business and work. Now during this period, they place an eye on these immigrants and see the value that they contribute to the growth of their country. What they do is that they observe their business undercover, they fetch intelligent students who are immigrants and put their knowledge into good use.

If you observe most of their successful local business in the US are all immigrants. The nails and spa are mostly from Asian. Vietnamese, Hawaii, Thailand and Japan precisely. You see a lot of black as doctors, nurses, soldiers etc.

In conclusion the American sees value and grab it. Because with their citizens alone they won't have the economic strength they have today.

It's basically its usefulness in global trades. Crude oil around the world is bought using USD, along with many other global commodities being traded across different air and sea ports globally. This create a very high demand for the U.S Dollar and in turn creates value. This is the reason Russia was requesting their oil and other mineral resources were bought in their currency, and why BRICS want to move away from the USD.

I personally think a currency backed against something tangible like gold was the best economic choice, but it doesn't allow the rapid growth and manipulative power governments have today.

Not so good a the moment. The Naira have been on freefall for a while now, and is of little to no demand in the international market.

IMO, one reason that made the American economy strong was because they embraced capitalism. They made their country a very easy place to do business. Since they have the market for almost everything, they made use of it. Anybody could go to the US to do business and get a better life. This invited a lot of business people and investors in the country.
This is evident in the fact that at least half of the top 50 richest people in the world are Americans.
The more investors in the country, the more the demand for the dollar, and with a very high demand for the dollar, the price increases.

Today, the dollar is the most sought-after currency in the international market. I don't advise saving in fiat, but there are very few currencies better than the dollar when it comes to saving for the long term. Even with the inflation in the U.S., the dollar is still more trusted than a lot of other currencies.

If tou think about it, U.S. economy rocks because it's got a bit of everything like tech, finance, manufacturing, you name it. They're big on innovation which keeps things buzzing. Their stable political scene and solid legal system make it a haven for businesses. In my country, its a lot worse and I can start with how the taxes are spentfor the reason why its not doing so well

There are three ways:
Fixed exchange rate: The central bank intervenes by imposing a fixed price for each dollar.
Flexible exchange rate: It is based on supply and demand and is not controlled by the central market.
Managed Flexible Exchange Rate: A combination of the two above where the rate moves according to supply and demand but the central bank intervenes in exchange rates.

The government should not interfere in exchange rates, but rather the one who controls this is the central bank for the purpose of currency stability and integration between it and the government as an independent authority. Otherwise, government interventions to address economic distortions may lead to more damage to the economy as a whole.

The US dollar is not strong because of economic calculations, but because it is supported by military and political power, and it has control over most patents.

The value of the currency plays an important role in the strength and development of a country's economy.

Their prices can be determined in two ways: the floating price and the fixed price. The floating price is determined by supply and demand in the global currency markets. If the demand for the currency is high, its value increases, and if it is low, this will lead to a decrease in the value of the currency. The fixed price is determined by The government through its central bank, where the price is determined against another major global currency such as the US dollar, the euro, or the yen, and to maintain the exchange rate, governments buy and sell their currency against the currency tied to it.

The dollar is the strongest currency in the world.. Why?

Economists point out that the US dollar has been the cornerstone of the global economy since the middle of the twentieth century, and it can be said that despite the repercussions of the strong dollar globally and the more stringent global financial conditions, the rise or stability of the dollar is due to reasons including what is related to the strength of the US economy and raising interest rates. By the Federal Reserve Board

There are a number of economic fundamentals that are considered a major factor in the rise in the value of the dollar, including the rise in US interest rates, the diversity and multiplicity of industries in the US economy compared to the dependence of other countries on a small number of industries or exports of goods, which makes them more vulnerable to economic cycles, and the confidence of investors and their aspiration to buy... Currencies with high interest rates create a reserve rate of return on their currency exchange, as higher interest rates make the currency more attractive and therefore in a growing economic environment this situation will make traders have a positive outlook on the rise of the dollar.

-What are the other factors that made America's economy the strongest in the world?
 -What is your assessment of your country's currency in relation to the dollar?